Ethereum's price, while influenced by the positive performance seen in past Q1s, faces challenges after reversing a portion of its 'Trump pump' gains. Crypto analyst Benjamin Cowen suggests the upcoming Federal Reserve rate decision and guidance could significantly impact ETH's trajectory. Cowen highlights the potential for ETH to decline if the Fed refrains from implementing quantitative easing (QE), but sees a possibility for a rebound if QE is implemented in March 2025. While Q1 historically favors ETH, January 2025 may close in red. Amberdata, an options analytics platform, identifies risks for ETH, predicting only a 15% chance of it reaching $5K by June. However, the platform also suggests potential bullish catalysts, including Elon Musk's interest in incorporating blockchain technology into Dogecoin, potentially using ETH as a platform. The ETH/BTC ratio also presents an opportunity for ETH to strengthen if it surpasses its moving average.
remains in a challenging position despite the overall positive performance during past Q1s. The altcoin has reversed nearly half of its ‘Trump pump’ gains and was down 4% in January.
“One risk for #ETH is if the Fed comes out this week and says no QE, maybe that would cause ETH to finally go home on its USD pair, leading the Fed to reverse course in March 2025 causing a quick recovery.”For context, QE is a period of increased money supply and dollar liquidity by the Federate Reserve.
It added that the price could trigger a sharp upside reversal if the U.S. government uses it to track government expenditures. Part of Amberdata’s weekly report
ETHEREUM FED QUANTITATIVE EASING OPTIONS TRADING BULLISH CATALYSTS
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